The International Finance Corporation (IFC) has proposed granting a guarantee facility of up to $50m to ZEP-Re to cover the reinsurance credit risk of the Nairobi-headquartered reinsurer.
In its investment information summary, the IFC said that the guarantee facility will enable the reinsurance company to expand its outreach and enhance its performance through underwriting additional, more profitable, and higher-quality business (the Project). Aside from finance, the IFC will promote knowledge, innovation and capacity building.
The Project will be complemented by advisory services to support the launch and expansion of digitally driven derisking solutions for smallholder farmers and SMEs (including women-owned SMEs across Africa.
Through the Project, ZEP-RE will write business across Africa. The most significant, expected Project-level outcome is increased access to agricultural insurance for farmers. Beyond the project-level outcomes, IFC anticipates that the Project will grow the insurance market in Africa, increase the resilience of the insurance market, and help close the protection gap in Africa.
ZEP-RE is a leading reinsurer in Africa and a specialised institution of the Common Market for Eastern and Southern Africa (COMESA). The company was established in 1990 through an Agreement of Heads of State and Governments of the then Preferential Trade Area, a precursor to COMESA, to develop the insurance and reinsurance industries and support capacity building.
The reinsurer delivers inclusive & innovative (re)insurance solutions across the continent to close the protection gap, manage risk, and support sustainable growth in growing Africa’s resilience. It offers a full range of reinsurance products and direct microinsurance solutions, leveraging strategic partnerships and technology/digital platforms.
ZEP-RE has eight country offices/regional hubs across Africa and operates across the continent.